The device installation took place this summer at Billia Croo near Stromness, involving more than 30 local companies from engineering and construction contractors to environmental consultancies, diving and vessel hire, events organisers and photographers. Aquamarine Power’s actual expenditure on local contractors and suppliers comes to over £1m.

In addition, the company had seven staff working full-time in Orkney during the installation of the Oyster device. “Our figures demonstrate the positive impact that wave energy can have on the Orkney economy, says Martin McAdam, CEO Aquamarine Power.

“A successful Oyster project would unlock £3-4 m of capital expenditure per MW installed, of which a significant proportion would be invested in the Orkney economy.  A commercial wave farm could therefore represent a significant boost to the local economy and would provide long-term skilled jobs for local residents. Ongoing operations and maintenance would generate a further £150,000 per annum to the local economy.”

In September, Oyster raised £10m first funding round to progress Oyster offshore testing from a strong shareholder base which includes Scottish and Southern Energy and Sigma Capital plc.

Stephen Hagan, Convener of Orkney Islands Council said:  “Orkney’s efforts to support the development of marine renewables in Scotland has been further rewarded with the successful installation of Aquamarine Power’s Oyster device. We remain committed to supporting this sector and ensuring that Orkney can put forward the best it has to offer, to optimise further growth and expansion in the industry.”

First Minister Alex Salmond MP, MSP officially switched on Oyster to begin producing electricity by pumping high pressure water to its onshore hydro-electric turbine.  The electricity will be fed into the National Grid to power homes in Orkney and beyond.

Oyster is Aquamarine Power’s first demonstration-scale wave energy device.  Its performance will now be monitored and the results from testing will provide a basis for the design of the next-generation commercial-scale Oyster.